Despite ongoing global economic uncertainty, Namibia’s financial system remains stable and sound, director of financial stability and macro-prudential oversight at the Bank of Namibia Florette Nakusera said.
Speaking at the Financial Stability report’s launch yesterday, she gave the assurance that the domestic financial system has weathered recent global shocks, and continues to demonstrate resilience.
“Domestically, we have seen that the system remains stable and sound,” Nakusera stated.
Global growth also remained relatively stable in 2024, holding at 3.3%, despite external pressures.
However, citing the latest figures from the International Monetary Fund (IMF), she warned of a slowdown on the horizon. The IMF’s projections, released on Tuesday, indicate that global growth is expected to decline to 2.8% in 2025, down from the average 3.7% seen in recent years, before making a modest recovery to 3% in 2026. Among the key contributing factors to the projected slowdown are rising trade tensions.
“Trade tariffs that have been announced, starting with the US and followed by counter-measures from other countries, are contributing to a less favourable global outlook,” Nakusera noted.
She pointed to China and the US as two major economies expected to experience a dip in growth between 2024 and 2025, with modest improvements anticipated by 2026. The repricing of risky assets and the broader impact of protectionist trade policies are ongoing risks which could continue to dampen global economic momentum.
Namibia Financial Institutions Supervisory Authority (Namfisa) chief executive officer Kenneth Matomola said this report outlines various risks which the financial sector encountered in 2024.
He emphasised that throughout the past year, all the users of financial service, have benefited from uninterrupted, reliable access to financial services, transacting reliably, even amidst challenges. This steadfast reliability is the very essence of the financial stability celebrated yesterday.
“Reflecting on 2024, the non-bank financial institutions, which account for about 70% of the total assets of the financial sector, have demonstrated remarkable growth, while our banks have remained robustly capitalised and liquid. Our payment systems have continued to support the efficiency and reliability of the broader economy,” he added.
Meanwhile, deputy governor of the Bank of Namibia Ebson Uanguta observed that through this report, the authorities seek to inform policymakers, market participants and the public about the current state of the financial system, the emerging risks that demand vigilance, and the policy and supervisory tools being deployed to mitigate risks.
This includes ongoing work in strengthening the macro-prudential framework, enhancing the resilience of institutions, and preparing for global and local shocks which may test the limits of the economic defences.
“Financial stability is not merely an abstract economic concept, it is the very foundation that supports jobs, livelihoods, trust and hope.
Without stability, even the most promising economic ambitions falter. We have seen how turbulence in one corner of the globe can cascade into widespread disruption, undermining growth and amplifying inequality. When the financial system stumbles, the repercussions are profound and can lead to job losses, business failures, diminished savings and the erosion of public trust,” said Uanguta.